Shareholder Alert: Robbins LLP Announces Armstrong Flooring, Inc. (AFI) Sued for Misleading Shareholders
November 21 2019 - 12:02PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Armstrong Flooring, Inc. (NYSE: AFI) filed a class
action complaint for alleged violations of the Securities Exchange
Act of 1934 between March 6, 2018 and November 4, 2019. Armstrong
Flooring designs, manufactures, sources, and sells resilient
flooring products.
If you suffered a loss as a result of Armstrong Flooring's
misconduct, click here.
Armstrong Flooring, Inc. (AFI) Accused of Channel
Stuffing
According to the complaint, in March 2018, Armstrong Flooring
filed a series of filings with the SEC, touting increasing net
sales in the hundreds of millions. In each of these filings,
Armstrong Flooring's CEO and CFO affirmed that the Company's
disclosure controls and procedures were effective. However, in
reality, Armstrong Flooring engaged in channel stuffing to
artificially boost sales and the Company's internal control over
inventory levels was not effective. The true nature of Armstrong
Flooring's financials began to emerge on May 3, 2019, when the
Company's CEO abruptly resigned. On this news, the Company's share
price fell nearly 12% to close at $13.14. Then, on November 5,
2019, Armstrong Flooring reported $165.6 million net sales for
third quarter 2019, representing a 21% decline year-over-year, and
cut its full year 2019 for adjusted EBITDA from a range of $46
million to $54 million to a range of $20 million to $25 million. On
this news, Armstrong Flooring's share price fell $2.90, nearly 44%,
to close at $3.70 per share, and has yet to recover.
Armstrong Flooring, Inc. (AFI) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20191121005781/en/
Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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